On Tuesday, the Court of Justice of the European Union (CJEU) ruled that antitrust authorities, which oversee major companies including Meta Platforms, are also authorized to examine privacy violations. This decision could enhance their capabilities in investigating Big Tech companies.
The judgment stemmed from a case involving Meta, which operates popular platforms such as Facebook, Instagram, and WhatsApp. In 2019, the German cartel authority instructed the company to halt the collection of user data without consent, labeling it as an exploitation of market dominance.
The dispute questioned whether the German antitrust office had exceeded its jurisdiction by invoking antitrust regulations to tackle data protection matters, traditionally handled by national data protection agencies.
Meta’s challenge prompted a German court to refer the matter to the CJEU for clarification.
A spokesperson for Meta responded to the CJEU’s ruling by stating, “We are evaluating the Court’s decision and will have more to say in due course.”
The CJEU emphasized that when conducting antitrust inquiries, it may be necessary for the relevant member state’s competition authority to assess compliance with laws beyond just competition statutes.
However, the court clarified that antitrust regulators should consider any actions or probes initiated by the appropriate regulatory authority regarding data protection.
The head of the German cartel office, Andreas Mundt, welcomed the ruling, underlining that personal data is a crucial element in determining market power. He remarked that the exploitation of consumer data by large internet firms can constitute anti-competitive behavior.
Legal expert Thomas Graf expressed caution about the extent to which antitrust bodies would engage in the intricacies of privacy law. He pointed out that these regulators still need to justify the relevance of privacy issues to antitrust law and show demonstrable restrictive effects and abuse. Coordination with GDPR authorities will also be essential.
The General Data Protection Regulation (GDPR) is a comprehensive law that mandates companies to comply with strict data protection measures when they process information related to individuals in the European Union.
Graf noted, “I don’t think antitrust authorities will become regulators of GDPR.”
Ursula Pachl, Deputy Director General of the European Consumer Organisation (BEUC), endorsed the ruling, stating that in a multifaceted digital economy, it is vital for authorities to adopt innovative approaches and prioritize data protection considerations.
The case in question was C-252/21 Meta Platforms and others (User conditions for a social network).
© Thomson Reuters 2023
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